Open letter to the CrossFi community by CrossFi Leadership Team
Dear CrossFi Community,
We wanted to first apologize for the recent issues that we have encountered and also thank you for your past support.
We initiated this project to make decentralized finance more accessible. In order to achieve this goal, we obtained significant seed investment to bring to market a world class product. However, with this investment came loss of control of this project. The investors required majority control of the foundation and the funds/wallet in exchange for funding. We were ensured that they would comply with the highest levels of compliance and security and that they would let the leadership team make important decisions — which both turned out to be false.
Since the alleged “hack”, our leadership team found that standard security protocols were not being followed and demanded the foundation 1) provide transparency on security protocols taken and management of the foundations funds, 2) obtain a professional third party custodian for management of the tokens, and 3) engage the highest level of security protection and audit — all of which were rejected.
As such, it would be irresponsible for us to continue working on this project. With a heavy heart, we regret to inform the community that the leadership team has resigned from the project. We leave with zero tokens as we feel it would be inappropriate to profit at the expense of the community, unlike the existing foundation.
The foundation is Crosslend. The Foundation legal person is Kim Aifu (Kimjiyoun) — Dataline cmo, Dataline is the Korean consortium behind. Our team was unaware of the situation. During this incident, the foundation told us that they have called the authorities, but our team has not received any details of the actual report.
CrossFi’s operational team has had no access to the wallet or the tokens; including the amount of funds raised. They are all managed in the personal computer hot wallet by Kim Aifu (kimjiyoun), the legal representative of the foundation.
There are eight key issues that the foundation needs to be held accountable and show transparency:
1. The authenticity of the hacking incident
2. 99% of the tokens are held in a single hot wallet, the most insecure method of holding tokens
3. There is no security or custody facilities
4. Free exchange of CRFI on the market
5. A detailed explanation of why the new pool of CRFI is greater than the number of CRFI released through IDO
6. Foundation’s private fund management and staffing, as well as their respective positions
7. Early investor capital flow, financial statements of the consortium.
8. Solve the problem of user compensation for the loss due to the hacking incident
Just like the investor community, we did not get an explanation either. We ask investors to cooperate with the team to find out the real culprit! We also are actively cooperating with the the community, and all review agencies to provide and bring forth the materials.